Industrywide Issues

Allegheny County | Industrywide Issues | M&A | Pennsylvania

Florida Condo Developer Buys 500 Acres of Marcellus/Utica Leases
December 1, 2014December 1, 2014

A deal to sell Wroblewski Oil and Gas, a small exploration and production and frac sand company headquartered in western PA, was announced last week. Wroblewski owns leases on 500 acres of Marcellus/Utica Shale leases–about enough to drill one well. The interesting thing, for MDN, is who is doing the buying: American Leisure Holdings, Inc. American Leisure, according to what we can find, develops vacation real estate properties (condos and such) in Florida. So what in the world are they doing buying a small Marcellus E&P company?…
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Economic Impact | Energy Services | Industrywide Issues | Pennsylvania | Statewide PA | UGI Energy Services

UGI Central Penn Natgas Rates Go Down Thanks to the Marcellus
December 1, 2014December 1, 2014

Once again, the cost of natural gas for customers in northeast and central Pennsylvania is going down. UGI, a major utility in PA, announced last week that rates for customers of their UGI Central Penn Gas subsidiary will go DOWN starting today. Why? Instead of buying expensive natural gas produced in the Gulf of Mexico and flowing it, via pipeline, to PA, UGI is now sourcing some 80% of their natural gas from the local Marcellus Shale. Thank you Marcellus! Here’s the announcement, with how much customers will save, on average, per month…
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Industrywide Issues | NGLs | Research

EIA Coins New Term, Issues Report on Hydrocarbon Gas Liquids (HGLs)
December 1, 2014December 1, 2014

It’s vocabulary day at MDN. The U.S. Energy Information Administration, our favorite government agency, has just released a new report on, and has coined a new term, called: Hydrocarbon Gas Liquids (HGL). In a nutshell, EIA uses the term HGL to refer to the combination of NGLs (natural gas liquids like ethane, propane and butane) and olefins (things like ethylene, propylene, butylene, and isobutylene). If you’re new to this whole shale gas thing and to the oil and gas industry, you need to know that the hydrocarbons coming out of the ground (oil and gas) are tightly connected to–in fact the source of–things like plastic and antifreeze. That is, oil and gas is part of the petrochemical industry. The EIA recognizes the importance and connection between petrochemicals and shale, and so have authored a new report, titled “Hydrocarbon Gas Liquids (HGL): Recent Market Trends and Issues” (full copy embedded below). Since there’s a lot of “wet gas” in the Marcellus and Utica Shale, the petrochemical industry is tightly connected to shale drilling in the northeast. This report connects the dots…
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Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

Fracking in Maryland (!) in 2015? Quite Possibly
November 26, 2014November 26, 2014

Looks like we owe an apology to Maryland. For years we’ve laughed and poked fun at Maryland and said it is the only state more dysfunctional than New York when it comes to allowing fracking. Yesterday, the special Maryland commission, set up 3 1/2 years ago by the outgoing, leadership-deficient Democrat Gov. Martin O’Malley, released it’s final report with recommendations for how fracking can go forward in the state (full copy below). Incoming Republican Gov. Larry Hogan has promised swift action on the fracking issue. Meanwhile, NY sits on its hands and does nothing. Mind you, the proposed Maryland regulations are so off-the-charts restrictive that even the nutty, far-left Chesapeake Climate Action Network is singing its praises (a big red flag). But hey, the ability to drill half a dozen wells in Maryland is better that what NY has! Let’s start with a summary of the new regulations put forward by the commission…
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Energy Companies | Energy Services | EnerVest | EV Energy Partners | GASFRAC | Hydraulic Fracturing | Industrywide Issues | Ohio | Tuscarawas County | Utica Shale

Details on GASFRAC’s Waterless Frack Test in OH Utica
November 26, 2014November 26, 2014

Two weeks ago MDN was (we believe) the first to call attention to a very short reference in the quarterly update from Canadian oilfield services company GASFRAC–a line that says GASFRAC had finally begun fracking a Utica Shale well using their waterless technology (see GASFRAC Begins Waterless Fracking Job in OH Utica). At the time we had no details about where the well is located, and who the exploration company is that GASFRAC is doing the work for. We now know those bits, thanks to some ace reporting by Tom Knox at Columbus Business First…
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Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Statewide WV | West Virginia

So-Called ‘Pipeline Air Force’ to Track Dominion Pipeline in WV
November 26, 2014November 26, 2014

Just when you think you’ve heard it all, along comes another bizarre twist from those who oppose shale drilling. As we’ve reported in a number of stories, Dominion is planning to build a 550-mile, $5 billion natural gas pipeline from West Virginia through Virginia and into North Carolina. It’s called the Atlantic Coast Pipeline project and the Federal Energy Regulatory Commission is now evaluating it (see Dominion Asks FERC to Start Environmental Review of SE Pipeline). Apparently a group of people who oppose the pipeline plan to keep an eye on it as it’s built (they must figure it’s a foregone conclusion that it will get built). They’ve somehow gotten ahold of three airplanes that they will use to spy from the sky as the pipeline gets built through the mountains of West Virginia…
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Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines

New Jersey Resources Update: NJ Loves Natgas & PennEast
November 26, 2014November 26, 2014

A casual news consumer may think that the State of New Jersey is somewhat anti-drilling and takes a dim view of natural gas. After all, the NJ legislature has twice passed a bill that would ban any frack waste from entering the state (see NJ Gov. Christie Vetoes Frack Waste Ban 2nd Time). And opposition to the PennEast Pipeline that runs from PA to NJ has been loud and shrill on the NJ end. What you may not know, however, is that two NJ utilities are partners in the PennEast Pipeline project (see NJ’s Largest Utility Becomes 5th Partner in PennEast Pipeline). New Jersey Resources, one of the two PennEast partners, yesterday issued an update on 2014 with guidance for 2015. The thing that caught our eye? NJR continues to add new natgas customers at a rapid clip–and they’re jazzed on the prospects for the PennEast Pipeline and new sources of cheap, abundant Marcellus Shale gas that will flow to NJ…
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Commodity Price | Industrywide Issues

Fitch Says Natgas Prices to Remain Low for Next Several Years
November 26, 2014November 26, 2014

What will the price of natural gas do over the next few years? According to analysts at one of the country’s largest credit rating agencies, Fitch Ratings, the price of natgas will “remain subdued over the next several years.” The minds at Fitch offer us their reasoning on where and why gas prices will head, along with the potential impact from low oil prices (yes, there is a connection). Here’s the latest thinking from Fitch, including an interesting discussion of “associated gas” supplies and how/why companies are still making money even with low gas prices…
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Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Regulation | Tennessee Gas Pipeline

Kinder Morgan Changes Route for Pipeline from MA to NH
November 25, 2014November 25, 2014

Kinder Morgan has, for some time, been locked in a battle with far-left anti-fossil fuelers in Massachusetts who oppose KM’s plan to extend the Tennessee Gas Pipeline across the width of the state in an attempt to deliver cheap, abundant, clean-burning Marcellus Shale natural gas to New England. Those same anti-fossil fuelers use fossil fuels throughout the day every day of their lives, but fail to see the hypocrisy in their twisted position. Pressure against the pipeline, called Northeast Energy Direct (or NED) is mounting as both MA U.S. Senators–both are Democrat–oppose it (see Both Mass. Senators Oppose TGP Northeast Energy Direct Pipeline). Two weeks ago KM proposed an alternate route (see map below). The alternate route, now said to be the preferred route, will shave off something like half of the distance the pipeline stretches across MA and instead chart a course northward–through southern New Hampshire–following the route of an existing power line. The cool thing? NH wants it…
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Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

KM Takes on Minority Partner in Northeast Energy Direct Pipeline
November 25, 2014November 25, 2014

More Tennessee Gas Pipeline – Northeast Energy Direct (NED) news today. Aside from today’s companion story today that Kinder Morgan (KM) is seriously considering a route change for the pipeline–away from Massachusetts and into New Hampshire–a second bit of important news. KM has cut a deal with Canadian-based utility company Algonquin Power & Utilities Corp. to invest in the NED project. KM is selling off up to a 10% ownership in the NED project to Algonquin in return for an investment of up to $400 million…
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Hydraulic Fracturing | Industrywide Issues | Pipelines | Processing Plants | Regulation

EPA Issues New Rules for O&G Industry on GHG Emissions Reporting
November 25, 2014November 25, 2014

The Federal Environmental Protection continues to regulate things it has not business regulating–not that it makes a hill of beans worth of difference that we point it out. Nobody will challenge them on their out-of-control behavior, so we all just pretend it’s OK and go along. The latest aggressive action taken by the EPA is to publish a rule change that will go into effect in 60 days. This new rule change is in how so-called greenhouse gas emissions are reported by the oil and gas industry. Both midstreamers and upstreamers are affected, so pay attention or prepare to be fined by the EPA…
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Industrywide Issues | Marshall County | Pennsylvania | Sand/Proppant | West Virginia | Wyoming County (PA)

WV Sand Company & Community Work Together to Solve Problem
November 25, 2014November 25, 2014

Ahhh, what a breath of fresh frac sand-free air. A month ago MDN told you about Hi-Crush Partners’ desire to build a frac sand transfer station in Tunkhannock (Wyoming County), PA–a plan that’s meeting resistance from the local community (see NEPA Town Residents Resist Frack Sand Transfer Station). Hi-Crush is now in court with the county planning commission. Meanwhile, in Marshall County, WV, a frac sand facility built by Unimin Sand Co. resulted in (yes) sand particles blowing into the nearby community. Did the community rise up and demand the facility be closed? Did the sand company push back and sue? Nope. They worked together. Unimin is building six new storage silos to contain the sand and the community appreciates the high-paying jobs provided by the company. Note to Wyoming County Planning Commission: Have a talk with the people in Benwood, WV to see how adults react to these issues when they occur…
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Broome County | Crestwood Midstream | Energy Services | Industrywide Issues | New York | NGLs | Schuyler County

Crestwood Execs on Radio to Promote Propane Storage @ Seneca Lake
November 25, 2014November 26, 2014

New York State is stuck in reverse. We can’t get shale drilling going. And shrill anti-fossil fuelers have gone so far as to illegally block the entrance to the future site of an underground storage facility for liquefied petroleum gas (propane) because they believe converting the depleted salt cavern into storing natural gas will lead to fracking in NY (see 10 Antis Arrested for Blocking Crestwood Facility at Seneca Lake). It’s so backward it’s hard to find words. However, there is hope. The Federal Energy Regulatory Commission has now blessed the Crestwood project, and the NY State Dept. of Environmental Conservation, which has delayed approving the project since 2009, has finally issued a draft permit and scheduled a hearing next February that will (hopefully) lead to a permanent permit to allow the facility. Which is why anti-drillers have been nuttier than usual lately. The Joint Landowners Coalition of New York (JLCNY) is hosting a radio program on the Sunday after Thanksgiving to air the real story of this facility and what it will mean for all New Yorkers…
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Accidents | Blue Racer Midstream | Energy Services | Industrywide Issues | Noble County | Ohio

Was the Blue Racer Accident in Noble County, OH Preventable?
November 24, 2014November 24, 2014

Nearly two weeks ago there was a fatal accident at a Blue Racer Midstream condensate pumping skid in Noble County, OH in which an electrical contract worker was killed (see Blue Racer Midstream Explosion Kills One Worker in OH). There was precious little information about the accident–what caused it–at the time. And since then, we’ve spotted nothing. We know it takes time to investigate such things, but usually there is at least an update or two during that period. We did, however, spot a letter to the editor from a veteran oilfield petroleum engineer who claims the accident was preventable. Since this engineer doesn’t work in the northeast and has no personal knowledge of the accident, we thought it was a pretty brash statement to make. Or was it?…
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Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | Regency Energy Partners | Statewide OH | Statewide PA | Statewide WV | Sunoco Logistics | West Virginia

Sunoco Logistics, Regency Energy Presentations from Analyst Day
November 24, 2014November 24, 2014

Last week both Regency Energy Partners, which purchased PVR Partners a little over a year ago (PVR having a major footprint in the Marcellus/Utica), along with Sunoco Logistics, another major midstream player in the northeast, participated in an analyst day last week at Ritz-Carlton in Dallas. While we don’t have a transcript, we do have the PowerPoint slide decks from both companies. And what we find on some of those slides is illuminating…
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Anti-Drilling/Fossil Fuel | Crestwood Midstream | Energy Services | Industrywide Issues | New York | Schuyler County

Steingraber, 2 Others Sent to Jail for Refusing to Pay Fine
November 24, 2014November 24, 2014

The increasingly shrill (and irrational) Sandra Steingraber, a so-called “scholar in residence” who’s paid to gallivant and protest shale drilling and related fossil fuel issues by Ithaca College, was (once again) arrested, refused to pay her fine, and carted off to jail for refusing to pay a fine because she illegally blocked the entrance to a legally running business that one day hopes to house underground storage of natural gas. The facility is a depleted salt cavern along the shore of Seneca Lake (near Watkins Glen, NY). Steingraber has pulled this stunt before (see NY Anti-Drilling Protesters Jailed After Refusing to Pay Fine). Since she gets no media attention and you wouldn’t know about it otherwise, we thought we’d share the news with you…
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